Whether you have opened a Self Directed Individual Retirement Account “SDIRA” or you have opened a Solo 401K for your business, or you are leveraging a high cash value IUL or even a LOC or HELOC, you will quickly understand that investing in notes can be rewarding. Yet, many of these alternative investment vehicle custodians and salespeople cannot legally teach how to invest much less understand the differences in the note investing space. In this video I want to briefly cover the most under-addressed aspect of note investing and that’s the borrower type.

How does the market affect your note investing? This is probably the greatest concern for private lenders. The “market” is often referred to as the housing market, and sometimes referred to as the economy. of course, we can’t look past the government’s influence on the market, so I wanted to discuss how the government can affect when you decide to invest in notes.

Public record is the creme de la creme. Having your Note secured to real property via a security instrument like a mortgage or deed of trust, lets everyone know who loaned the money, how much, who borrowed the money, and what the terms are. The mortgage also stipulates how repayment is supposed to happen, how periodic payments are to be made, and most importantly language that protects you, the lender in the case of default on behalf of the borrower.

The definition of a note is quite simple. A note is a physical representation of your capital (the lenders) given to you by the borrower. The note tells all parties involved how much you are lending, what is the rate of return, when you should expect that note to be repaid, and the payment structure of the note. This is just like REAL money because it’s a legally binding document, enforceable in court that is a representation of the exact amount of money you loaned. Keep it secret, keep it safe.

Blue Bay Capitals Turn-Key Private Lending solution is a great answer for the passive investment question. Our capital partners are able to leverage our knowledge, experience, and professionals in the industry while participating in a large loan with smaller investment amounts.

In this video, I cover the high-level ideas about Who, What, When, Where, Why, and How private lending should be a part of every investor’s portfolio and how my turn-key private lending solution can solve this hurdle for you. All investments have risks, and private lending is not insulated from risks. However, we have a powerful tool that no other investment strategy allows and that’s risk mitigation. The ability to cover your downside and shift all remaining risks to the borrower. The ability for you to MAKE your investments as safe as possible.